Landline Should Go For Net Revenue The accounting issue at hand in this case is revenue. Landline is offering call routing services for PRU and the former entity has to make some receipts from the services rendered. To put the issue at hand in context, revenue is generally the income received by any company from selling goods or services. In abroad sense, revenue is the income received by any commercial institution for the goods sold or services rendered. It is basically the incoming receipts generated from the services offered or goods sold. It is the core parameter of consideration in the event of evaluating the company’s health. There are two classifications of revenue and the situation in which Landline is requires serious …show more content…
Landline is essentially being outsourced by PRU for routing the calls of the latter yet PRU does not mention it in its marketing campaigns or any other strategic communications of the business. This leaves Landline as a fully-fledged contractor of the outsourced variety. From the relationship between the two companies where Landline submits 80% of revenue to PRU, it is clear that landline gives out commissions to PRU yet it does all the logistics of the daily running of the phone routing service. This puts Landline in a critical situation where the taxman comes calling and the customers who use primarily Landline’s infrastructure are not even aware o0f the existence of such a company. It would be wise for Landline to consider net revenues in the relationship it has with PRU. This way, landline will be able to determine the feasibility of the engagement in terms of profitability and viability much faster than if it went for gross revenue. Gross revenue would be false indictor of the financial position of Landline because 80% of the gross revenue belongs to PRU yet Landline does all the logistics of hiring and paying statutory bills. The journal entries that re important here are the number of seconds per call, the applicable statuary tax per on each call, the hardware and software resource requirements necessary to facilitate the call every second or minute, and the human resource cost applicable to making
Xilinx, Inc. designs, develops, and markets complete programmable logic solutions, including advanced integrated circuits, software design tools, predefined system functions delivered as intellectual property cores, customer training, field engineering and technical support. Customers are electronic equipment manufacturers primarily in the telecommunications, networking, computing, industrial, and consumer markets. Products are sold globally through a direct sales management organization and through franchised domestic and foreign distributors. (Source: Company 2007 Form 10-K)
24.Which of the following items should not be included in the Cash caption on the balance sheet?
VoIP phones require little technical knowledge when it comes to installation. Instead of having someone run phone wiring through a facility, you can set up the VoIP phone, which installs fast and requires little maintenance. In addition, as your company grows, the cost to add new users is minimal, and it doesn't take to scale your business up as it grows. Try that with a PBX, and your company will pay a lot more to install more phone lines. Over the next year, you don't know how many phone lines you might need. With a traditional phone system, you have to exercise caution not to buy phone lines you might never use.
Additional details can include whether a company has a firewall, and whether the ports that permit the two most common VoIP protocols SIP and MGCP ports are blocked. In addition, reviewing internal network needs, a review of the network connectivity will be used to deliver VoIP should occur. Network connections should be over dedicated circuits if more than one phone call are to be supported, but the shared nature of other technologies such as ATM, Frame relay, and cable connections tend to cause quality issues that would not otherwise be noticed as a user utilizes the network (Bandwidth).
The investment can be made which can be realized in a year and they can be commercial paper, certificate of deposits, treasury bills, and etc.
Employees seems to be an extraordinary cost driver for unprofitable firms. Again more information about employee cost is needed for both profitable and unprofitable firms.
VoIP stands for 'V'oice 'o'ver 'I'nternet 'P'rotocol, popularly known as IP telephony. As the term says VoIP tries to let go voice (mainly human) through IP packets and, in definitive through Internet. Thus Voice-over IP (VoIP), is the transmission of telephone calls over a data network like one of the many networks that make up the Internet. While you probably have heard of VoIP, what you may not know is that many traditional telephone companies are already using it in the connections between their regional offices.
If I were to price these boxes any lower than $480 a thousand, said James Brunner, manager of Byrch Paper Company Thompson Division, I’d be countermanding my order of last month for our salesmen to stop shaving their bids and to bid full cost quotations. I’ve been trying for weeks to improve the quality of our business, and if I turn around now and accept this job at $430 or $450 or something less than $480, I’ll be tearing down this program I’ve been working so hard to build up. The division can’t very well show a profit by putting in bids which don’t even cover a fair share of overhead costs, let alone give us a profit.
The IT department has been given a budget of $25,000 to complete the project. The budget includes the equipment, the installation, all software and licensure used to operate and maintain the VoIP throughout all three (3) buildings. An estimate is required if outsourcing to a local installation company is decided upon. The estimate must be approved by the President or CEO of the company before any work is performed or started.
Costs assigned to the building of a house should appear on the income statement when
Consumers Union is a nonprofit organization that provides information and counsel on consumer goods and services. A major part of its function is testing of different brands of consumer products that are purchased on the open market and then the reporting of results of the tests in Consumer Reports, a monthly publication. Examples of the types of products it tests are middle-sized automobiles, residential dehumidifiers, flat-screen TVs, and boys’ jeans.
Here are some advantages of having a VOIP system in place in a business. One that is most advantageous is that it runs of the internet. Most businesses, if not all uses the internet, so the use of communication is available. Secondly, would the cost savings of using VOIP over the use of a traditional analog system. However, the savings would depend on what services a business uses. Thus, a business should do a cost analysis report so they can get the savings and services they need to make their company more sufficient (Tan, 2011). Another advantage is the multiple ways of communication. Some services are computer based. All one would need is a microphone attached to a computer to
3. In analyzing the cash flows from Chemalite using both the direct and indirect methods, one can see similar patterns in the where the uses of cash is directed. The money in both methods is going towards the company itself and funds necessary to make sure it stays afloat. The main source of the cash inflow is from the sale of Chemalite. The sale from 1991 brought in a total of $754,000 and 1992 brought in a total of $1,886,250. A sales increase of about 250% is very impressive for one year is responsible for bringing in the majority of cash for Chemalite Inc. Cash outflow is a slightly different case. Cash outflow for Chemalite is mostly going back into the company itself for the sake of growth. Growth in the cash flow
This report was written to analyze the competition among the Voice-over Internet Protocol (VoIP) industry segment, especially as it relates to the relationship between Skype and AT&T and the competition between the VoIP market and the land line market. In analyzing this segment we found that VoIP is a growing industry in what has historically been predominately a land line telecommunication company such as AT&T.
Business phone service: Covered the cost of the call control to provide a discounted rate off small and medium business and give freedom to talk without limit anywhere in the world.